Microsoft, Novell reach agreement on Linux-source

Microsoft Corp. and Novell Inc. plan to enter into an agreement that would allow open-source Linux software to work with Microsoft's Windows software, a source close to the situation said on Thursday.

The agreement marks a change of course for Microsoft, which has spent years trying to defeat open-source software. The growing popularity of Linux servers has increased Microsoft's customer's needs for the two technologies to work together.

The source said on condition of anonymity that Microsoft planned to announce the collaboration on Thursday at a news conference attended by Microsoft Chief Executive Steve Ballmer and Novell CEO Ron Hovsepian.